Here's yet another news post on companies cutting back on their staff, oh boy. At least with Gaia Online it's a paltry 36 employees, 16 full-time staff and 20 contractors. That happens to be about 13% of the staff and is attributed to the less-than expected performance of zOMG!, which had around 500k players in November and just hit one million. As large as that number sounds, it's being drawn from the 11 million base of Gaia Online, so, it's all relative.
There doesn't seem to be much worrying though, as the company has said they're merely preparing for a downturn in the coming year. We get the feeling that news like this is going to keep coming over the next 12-18 months, if not a little longer. Hopefully though, it's only small cuts like this and not the sort of job loss that's starting to become expected at other well-known developers.
For those of you scratching your heads over this whole "zOMG!" game, check out Massively's first impressions for a glimpse into the beast, as they say.